AC Milan’s financial situation is improving and there are two big signs that Elliott Management are feeling good about the club’s economic health.
As Tuttosport (via PianetaMilan) reports, the 2020-21 Milan accounts closed with a loss of €96.4m, a figure which represents a clear improvement compared to the previous year where the club were €194.6m in the red. When taking into account the impact Coronavirus had – with the Rossoneri forced to give up around €40m in ticket revenue – it is a good sign.
The accounts are also positive with regards to Financial Fair Play, as the club will meet with UEFA next month to discuss their path forward off the pitch. The reopening of the stadiums (probably at 80%) and the agreements with new sponsors will allow to increase revenues and consequently cut losses.
There are two signs in particular that are very positive. The first is that Milan do not have “traditional” debts with banks which is an important sign of solidity from Elliott, which is slowly bringing the club back to the top.
Then, there is the fact that the American fund committed to spending €70m in the summer transfer window, which is a further sign that they are willing to improve the squad with the right investments.
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I mean, this is being spun as good news, but it’s still a humongous loss. Yes, it’s in a Covid year, but this article
At the moment, the losses outweight the entire salary bill of the club (est ~€90m) so even with an extra €40m from gate receipts (which won’t be 100% this year) there’s no positive balance in sight yet.
It’s going to take multiple years in the Champions’ League, with possibility to progress to the knock-out stages (where the big money is) without drastically increasing the wage bill just to be able to turn profit. With the competitiveness in Serie A at the moment, the terrible UEFA coefficient and the likelihood of future FFP penalties, that’s a long way from guaranteed.
the FFP would be banned sooner or later, they are speculating to sweep it aside